Philip Morris International Inc. (NYSE:PM)

The financial ratios for the company reveal several notable trends over the observed period from early 2020 through early 2025. The price to earnings (P/E) and price to operating profit (P/OP) ratios demonstrate fluctuations with a general upward trajectory towards the end of the period. The price to sales (P/S) ratio exhibits moderate variability but also shows an increase in the later periods. The price to book value (P/BV) ratio is not available throughout the dataset.

Price to Earnings (P/E) Ratio

Beginning with a value of 16.55 in March 2021, the P/E ratio experiences some oscillations across the quarters but maintains a relatively stable range between approximately 15.87 and 19.02 until the end of 2023. Starting in 2024, the ratio increases more steeply, rising from 17.69 in December 2023 to 34.84 by March 2025. This represents nearly a doubling in the valuation metric, indicating heightened investor expectations or a change in earnings performance relative to the share price.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio follows a comparable pattern to the P/E, initiating at 11.43 in March 2021 and remaining within a tight band between roughly 11.31 and 13.68 throughout most of the period until late 2023. From December 2023 onward, the ratio escalates sharply, reaching 19.04 by March 2025. This suggests an increased market valuation relative to the company’s operating profit, possibly reflecting investor optimism or shifts in profitability margins.

Price to Sales (P/S) Ratio

The P/S ratio begins at 4.65 in March 2021 and shows moderate variation, fluctuating in the 4.0 to 5.5 range during the first part of the period. However, starting around late 2023, it trends upward more noticeably, culminating at 6.9 in March 2025. This rising trend indicates growing valuation multiples relative to revenue, which may be supported by sales growth or positive market sentiment towards future revenue prospects.

Price to Book Value (P/BV) Ratio

No data is available for the P/BV ratio throughout the entire period, precluding any meaningful analysis in this regard.

Overall, the analyzed financial ratios suggest that while the company’s valuation metrics remained relatively stable through 2021 to 2023, there is a clear upward acceleration in valuation multiples starting in late 2023 and continuing into early 2025. This may signify increased investor confidence, anticipated improvements in profitability, sales expansion, or potentially price increases outpacing earnings and sales growth. The absence of P/BV data limits the assessment of the company’s equity valuation trends relative to its book value.

Share Price Trend

The share price exhibited a general upward trend from March 2020 through March 2025. Initially, it ranged between approximately $71 and $85 during 2020, followed by a noticeable increase to above $90 through 2021. There was some fluctuation but an overall rising trend in 2022 and early 2023, with prices primarily between $89 and $102. From mid-2023 onward, the share price showed stronger growth, crossing $113 by mid-2024 and reaching a peak of approximately $170 by March 2025. This indicates growing market confidence or value perceived by investors over the analyzed period.

Earnings Per Share (EPS) Trend

EPS data begins in March 2021 and shows relatively stable values initially, fluctuating slightly around the $5 to $6 range. EPS increased gradually from 5.17 in March 2021 to a high near 6.32 in September 2024. However, there was a marked decline around the end of 2024 and early 2025, where EPS decreased to approximately 4.54 in December 2024 before a partial recovery to 4.88 by March 2025. The EPS stability combined with mid-cycle growth followed by a late-period dip suggests varying profit performance or external factors affecting earnings towards the end of the timeline.

Price-to-Earnings Ratio (P/E)

The P/E ratio, available from March 2021, displays an increasing trend over the period. Starting around 16.5, it showed minor fluctuations but generally rose, reaching 21 by September 2024. The ratio spiked significantly thereafter, going up to approximately 35 by March 2025. This elevated P/E despite a reduction in EPS in the same period indicates that share prices outpaced earnings growth, suggesting increased investor optimism or higher valuation multiples being applied in the later quarters.

Overall Financial Interpretation

The analysis reveals that while earnings per share experienced moderate growth followed by a decrease, the share price steadily increased with a pronounced acceleration towards the end of the period. The rising P/E ratio, especially in the final quarters, points to expanded market valuation relative to earnings, which may reflect positive speculative sentiment or expectations of future earnings growth. The disconnect between EPS and P/E in late 2024 and early 2025 could warrant further investigation into market conditions or company-specific factors influencing investor behavior.

Share Price Trend

The share price exhibited notable fluctuations over the examined period. Starting at $77.25 in March 2020, the price experienced a general upward trend with intermittent declines. By December 2020, the price reached approximately $85.63, then continued to rise, peaking at $107.96 by the end of 2021. In 2022, the share price underwent a decline, dropping to around $89.54 in September, but subsequently recovered to approximately $102.36 in December 2022. The early months of 2023 saw modest volatility, with prices fluctuating between $89.01 and $98.58. Significant growth occurred from early 2024 onwards, with the price advancing sharply to reach $170.07 by March 2025, indicating strong market valuation and investor confidence in this period.

Operating Profit Per Share (OPPS)

Operating profit per share data, available from March 2021 onwards, showed a relatively stable and modest upward trajectory with slight fluctuations. Starting at $7.49 in March 2021, OPPS increased steadily to $8.37 by March 2022. During the subsequent quarters, OPPS slightly decreased, reaching $7.21 in September 2023, reflecting a brief period of contraction in operational profitability per share. However, it rebounded gradually through late 2023 and into 2024, ultimately reaching $8.93 in March 2025. The overall trend points to a resilient operating profit generation capability with some temporary downward movements.

Price-to-Operating Profit Ratio (P/OP)

The P/OP ratio, representing valuation relative to operating profit per share, shows an increasing trend across the available data starting from March 2021. Initially, the ratio was 11.43 and oscillated moderately, peaking at 12.96 in March 2023. From mid-2023 onward, the ratio escalated more steeply, reaching 19.04 by March 2025. This growing ratio indicates that the market price for each unit of operating profit has been rising, suggesting elevated investor expectations or increased valuation multiples despite only modest growth in operating profit. This divergence between price appreciation and operating profit growth suggests market optimism, potentially reflecting anticipated future performance or other qualitative factors not immediately reflected in the operating profit figures.

The share price demonstrates a generally upward trend over the observed period from March 31, 2020, to March 31, 2025. Initially, the price fluctuates moderately around the 70 to 110 US$ range, with some notable volatility in 2020 and 2021. Beginning in early 2023, the share price shows a stronger upward momentum, rising significantly from approximately 89 US$ to over 170 US$ by March 2025, indicating increased market confidence or improved company performance.

Sales per share data, available from March 31, 2021, onward, reveal a consistent increase. Starting at 18.42 US$ per share, sales steadily rise each quarter, reaching 24.66 US$ by March 31, 2025. This incremental growth suggests steady revenue expansion or increased efficiency in revenue generation on a per-share basis, contributing positively to shareholder value.

The price-to-sales (P/S) ratio exhibits variability throughout the timeline. Early figures, beginning at 4.65 in March 2021, show a modest increase peaking at 5.33 in March 2022. Following this peak, the ratio declines gradually, reaching its lowest point at 3.93 in September 2023, which may imply that the share price had growth limitations relative to sales or an improvement in sales valuation. However, from late 2023 through early 2025, the P/S ratio increases substantially, reaching 6.9 by March 2025. This rising ratio suggests that the market valuation of the company's sales has strengthened considerably, potentially reflecting improved investor sentiment, expectations of future growth, or enhanced profitability prospects.

Share Price Trend

Volatile in early years with moderate growth, followed by strong upward trend from 2023 to 2025.

Sales per Share

Consistent quarterly growth from 18.42 to 24.66 US$, indicating steady revenue expansion per share.

Price-to-Sales Ratio

Fluctuating between 4.65 and 5.55 initially, dipping to below 4 in 2023, then rising sharply to 6.9 by 2025, signaling increasing market valuation relative to sales.

Overall, the data reflects a positive financial trajectory characterized by steady revenue growth and a rising share price. The increasing price-to-sales ratio toward the end of the period suggests an enhanced market valuation and confidence in the company's future performance. The correlation between the expanding sales per share and the accelerating share price supports the view of improving financial health and investor optimism.

Share Price Trend

The share price of the company exhibited notable fluctuations over the analyzed period. Starting at $77.25 in March 2020, the price saw an increase reaching a peak of $107.96 by December 2021, demonstrating a strong upward trend during this timeframe. However, following this peak, the share price experienced some volatility, decreasing to $89.54 by September 2022, before recovering again by the end of the year at $102.36. The price remained relatively stable around the $89-$98 range in the first half of 2023, with a resurgence commencing in the latter part of 2023. This upward momentum continued into 2024, with the share price rising sharply to $170.07 by March 2025, indicating significant investor confidence or positive market sentiment in the recent quarters.

Book Value per Share (BVPS) Trend

The Book Value per Share displayed a persistent negative value throughout the entire period, indicating that the company's liabilities exceeded its assets on a per-share basis. The magnitude of the negative BVPS initially improved from -8.31 in March 2020 to a less negative -5.75 by March 2023, suggesting some strengthening in the company's net asset position relative to the number of shares. However, starting in mid-2023, the BVPS trend reversed somewhat, becoming more negative again, declining to -7.56 in March 2025. These fluctuations indicate underlying challenges in asset management or increasing liabilities that influenced the net book value adversely over the latter part of the time series.

Price to Book Value Ratio (P/BV)

The Price to Book Value ratio values are absent from the reported data, limiting the ability to directly assess the market valuation relative to the book value. However, given the persistent negative BVPS and the positive and rising share price, it can be inferred that traditional valuation metrics based on book value may not be relevant or straightforward for this company. The negative book values paired with a rising share price suggest market valuation factors are driven more by future earnings potential, brand strength, or other intangibles rather than the company's net asset base as reflected in the book value.